Friday 29 Mar 2024
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KUALA LUMPUR (May 19): Paramount Corp Bhd’s net profit grew 18.5% to RM24.83 million, from RM19.56 million in the previous corresponding quarter, thanks to the higher progressive billing.

Its revenue soared 67% to RM165 million, from the RM98.78 million in the year before.

In its filing to Bursa Malaysia today, the group attributed its 1Q15 growth to its property division, which was almost doubled as compared to the previous year.

“Revenue almost doubled, by 94%, due to higher progressive billings registered on the Sejati Residences in Cyberjaya, Utropolis in Glenmarie and Sekitar26 Business in Shah Alam developments.”

Other than that, the group also highlighted its education division, which had a 12% higher revenue of RM36.1 million, compared with the year before (RM32.3 million).

“Revenue increased by 12% due to higher profits from Sri KDU primary and secondary schools and KDU College Penang, mitigating the higher losses incurred by KDU University College.”

Despite the higher earnings, its group CEO Jeffrey Chew said that 2015 will be a challenging year, due to many different factors which dampen the public’s appetite for the property sector.

He added the group’s strategy moving forward, will be to make the most of opportunities that the property and education division has to provide.

Chew sees an upside potential in the property sector, as the government is making home ownership more affordable, and improved connectivity is opening up new areas of growth in Greater Klang Valley.

“Buyers will, however, be more discerning. We need to up our ante on innovation, put in place more robust sales and marketing efforts, and ensure we have outstanding customer service.

“Our 32-year track record has taught us that education is generally recession-proof, and can sometimes lead to growth opportunities. Our strategy will be to make good quality education more affordable and more accessible through twinning, franchise and home-grown programmes at the tertiary level, and to offer budget schools in the primary and secondary segments.”

Paramount's share price gained 1.8% at RM1.70 today, for a market capitalisation of RM717.85 million.

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